Is Suzlon Energy a Multibagger Stock? Should You Buy at Rs 60 or Rs 80?

In the world of stock markets, some stocks make a significant impact, and Suzlon Energy Ltd is currently one of them. The renewable energy giant has been making waves lately with impressive results and market performance, causing investors and analysts alike to speculate about its future. But the key question remains: is Suzlon Energy the next multibagger stock? Should you buy at Rs 60 or Rs 80?

Suzlon Energy's Recent Performance

Suzlon Energy has been in the spotlight recently, with its stock hitting the 5% upper circuit limit in consecutive trading sessions. The surge followed the company’s impressive December quarterly results, which exceeded analyst estimates. With a current trading price of around Rs 55.39 (as of January 30, 2025), the stock has shown substantial growth, being up a staggering 518.19% over the last two years.

Despite recent fluctuations, Suzlon’s stock continues to be a strong contender in the renewable energy space, attracting attention from both retail and institutional investors.

Target Price: Rs 60 or Rs 80?

Two major financial institutions, JM Financial and Nuvama Institutional Equities, have shared their optimistic outlook on Suzlon Energy, albeit with slightly different target prices.

• JM Financial has set a target price of Rs 80 for Suzlon Energy, citing a strong order book, improved manufacturing capacity, and a leadership overhaul. They believe these factors position Suzlon for significant growth in the future. JM Financial’s target suggests a potential upside of up to 44% from the current price of Rs 55.39.

• Nuvama, on the other hand, is a bit more conservative with a target price of Rs 60. This target was set after the stock corrected in recent times, making it an attractive buy. Nuvama praised Suzlon’s Q3 performance, which showed robust execution despite earlier projections and higher margins.

Why Are Analysts Bullish on Suzlon?

There are several reasons why analysts are optimistic about Suzlon’s future:

1. Strong Order Book: Suzlon has secured its highest-ever order book at 5,521 MW as of January 2025. This diversified order book includes several large-scale projects, including India’s largest wind energy order of 1,166 MW from NTPC Green. With additional tenders on the horizon, the company’s order visibility is stronger than ever.

2. Capacity Expansion: Suzlon is ramping up its manufacturing capacity, and with improved operational readiness, it is positioned to scale production and meet growing demand in the renewable energy sector.

3. Leadership Changes: The recent leadership changes at Suzlon are seen as a positive development, expected to bring fresh perspectives and strategies to the company.

4. Strong Customer Base: Suzlon’s customer base includes a diverse mix of commercial and industrial clients (58%) and public sector undertakings (21%), providing stability and growth opportunities in multiple sectors.

Key Risks and Considerations

While Suzlon Energy shows immense potential, there are always risks involved in investing in any stock, particularly in the energy sector. Some key risks to consider include:

• Execution Challenges: As Suzlon expands its projects, timely and successful execution will be crucial to maintaining investor confidence.

• Regulatory and Policy Risks: Being in the renewable energy sector, Suzlon is subject to policy changes, government regulations, and shifts in subsidy structures that could affect profitability.

• Market Volatility: The stock market is inherently volatile, and Suzlon's price could be impacted by broader market conditions or investor sentiment, regardless of the company’s fundamentals.

Should You Buy Suzlon Energy?

With the potential for high returns and a solid growth outlook, Suzlon Energy could be an attractive buy for long-term investors. However, the choice between a target of Rs 60 or Rs 80 depends on your risk tolerance and investment horizon.

• If you are willing to take on slightly more risk in exchange for a potentially higher return, aiming for the Rs 80 target might be worth considering, especially with Suzlon’s expanding order book and manufacturing capacity.

• If you are looking for a more conservative approach or seeking a price entry after a stock correction, then a target of Rs 60 could be a better fit for your strategy.

As always, it’s crucial to do your own research and consult with a financial advisor before making any investment decisions.

Conclusion

Suzlon Energy has a bright future in the renewable energy sector, and analysts are bullish on its long-term growth. Whether the stock will reach Rs 60 or Rs 80 is still to be seen, but its strong fundamentals, large order book, and strategic initiatives make it a stock worth keeping an eye on. As with all investments, however, there are risks, so weigh your options carefully before diving in.

Reference from:-https://www.businesstoday.in/markets/stocks/story/suzlon-energy-shares-at-rs-60-or-rs-80-key-trigger-for-multibagger-stock-462534-2025-01-30